Kolkata (West Bengal) [India], November 29 (ANI): External Affairs Minister S. Jaishankar on Saturday highlighted the vulnerabilities facing global supply chains, citing the impact of conflicts, climate events and demand-side uncertainty. He noted that a third of global production currently takes place in China.
Speaking at the Doctor of Philosophy (Honoris Causa) Conferral Ceremony at IIM Calcutta, Jaishankar underscored the volatility caused by U.S. tariffs and the changing dynamics of global trade.
“A third of global production currently takes place in China. This has put the spotlight on the resilience and reliability of supply chains. Conflicts and climate events have added to the possibility of their disruption. When it comes to energy, the U.S. has gone from being a major importer to a significant exporter of fossil fuels. At the same time, China dominates the world of renewables. Where trade is concerned, supply-side risks are aggravated by demand-side uncertainty. The salience of tariff rates to trade prospects has obviously heightened volatility, and as for finance, the prolific application of sanctions, the seizure of assets and the advent of blockchain-based technologies are today part of the new realities,” he said.
Jaishankar stressed that in a world full of uncertainties, India will continue to prioritize its own interests.
“In an uncertain world, it is all the more important that we continuously diversify supply sources to ensure, to guarantee our national needs. With these considerations in mind, we are today endeavouring to forge new trade arrangements and promote fresh connectivity initiatives. While they certainly represent key facets of our policy priorities, it also speaks for the importance that the world attaches to ties with India. As we ascend the global economic hierarchy, the case for them will only get stronger,” he said.
He added that such initiatives have long-term repercussions and must be undertaken with judiciousness. Trade decisions, he said, will be guided by a people-centric vision, while connectivity plans will take into account both strategic and economic considerations.
Jaishankar emphasized the role of industry, stating that a major power like India must have a significant industrial base.
“How does India respond to these new realities? Well, obviously, by pursuing policies and taking actions that advance our comprehensive national power, reduce our vulnerabilities and promote our influence. Now the last two clearly constitute the core of our diplomatic activities. As India rises and our economy grows, we are preparing to shoulder more responsibilities in this regard. A major power, that too one with higher aspirations like us, must have a significant industrial base. Unfortunately, this was not an assumption necessarily accepted by policymakers before 2014,” he said.
He noted that the ‘Make in India’ policy aims to promote sustained industrial growth.
“Promoting industrial growth and even incentivizing it is today a key economic priority. The emphasis on ‘Make in India’ in the last decade speaks of a different mindset and greater ambition. For its full potential to be realized, the industry has to wholeheartedly partner and look beyond the short term. It must help build the domestic supply chain even as we seek to participate more in the global one. As it strikes roots, ‘Make in India’ is strengthened by research in India, innovate in India and design in India,” he said.
Jaishankar observed that while the United States has long underwritten the current international system, it is now setting new terms of engagement—often bilaterally rather than through established regimes. China, he added, has been operating by its own rules and continues to do so more assertively.
“In the ensuing scenario, other nations are unclear on whether their attention should be on the visible competition or the trade-offs and understandings that punctuate it. Faced with such pulls and pressures of globalization, fragmentation and supply insecurity, the rest of the world responds by hedging against all contingencies. Even as it engages the United States and China directly, choices are avoided where feasible and choices are made when beneficial. Simultaneously, other options between themselves are explored with greater urgency. One sign of that is the uptick in the enthusiasm today for free trade agreements across geographies,” he added.
IIM Calcutta stated that Jaishankar also reflected on the transformative impact of emerging technologies, particularly the growing influence of artificial intelligence, and emphasized the need for preparedness in an evolving global landscape.
“IIM Calcutta had the honour of conferring the Doctor of Philosophy (Honoris Causa) upon Hon’ble Dr. Subrahmanyam Jaishankar, Minister of External Affairs, Government of India. In his address, Dr. Jaishankar reflected on the transformative impact of emerging technologies—particularly the growing influence of artificial intelligence—and underscored the importance of preparedness in an evolving global landscape. He emphasized the need to reduce vulnerabilities, adopt a more active national role and strengthen domestic capabilities,” the institute said in a statement.
“Dr. Jaishankar shared his perspectives on India’s strategic priorities, including the 3T approach—Trade, Technology and Tourism—and stressed that Atmanirbhar Bharat is ultimately a mindset. He expressed his gratitude to IIM Calcutta for conferring the honorary doctorate degree. The institute was privileged to host this insightful and memorable occasion,” the statement added. (ANI)
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